This bill would enact The New York AI Act which creates a punitive enforcement mechanism that will incentivize frivolous litigation and introduces overly vague definitions and burdensome audit and reporting requirement that will jeopardize the state’s innovation economy and any business deploying AI systems (including small businesses). During a Senate Hearing, a representative from Schellman stated that an initial audit would cost any business between $20,000 - $50,000, with subsequent audit years being on the “lower range” of that estimate, to which the Senate sponsor replied that it seems like a “reasonable cost” for businesses to bear.
